Chinese AI firm DeepSeek is seeking to raise about 50 billion yuan (US$7.4 billion) in its first external funding round, according to people familiar with the matter.

The round could value the company at 350 billion yuan (US$51.8 billion) to 400 billion yuan (US$59.2 billion) post-money, with investors including Tencent Holdings and CATL expected to participate.

Founder Liang Wenfeng has committed 20 billion yuan (US$2.96 billion).

Tencent is considering 10 billion yuan (US$1.48 billion), while CATL, the Chinese battery maker, is weighing 5 billion yuan (US$740 million).

NetEase, the Chinese gaming company, JD.com, the Chinese ecommerce company, China’s national AI fund, IDG Capital, and Monolith Capital are also prospective investors, the people said.

DeepSeek was formed in 2023 as a research unit under High-Flyer, the hedge fund Liang co-founded.

It gained global attention early last year after its V3 and R1 models drew praise in Silicon Valley and challenged assumptions about China’s AI capabilities.

The funding round is expected to close within the next couple of weeks, though terms could still change.

🔗 Source: Reuters

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